Avis Budget Group, Inc. (CAR) vs Custom Truck One Source, Inc. (CTOS)

Avis Budget Group, Inc. and Custom Truck One Source, Inc. are both Rental & Leasing Services companies. Avis Budget Group, Inc. is the larger, with a market value of $3.7B against $2.1B — 1.7× the size. Avis Budget Group, Inc. has negative trailing earnings, so its P/E is not meaningful; Custom Truck One Source, Inc. trades at 105×. Custom Truck One Source, Inc. grew revenue faster over the last twelve months: 7.03% against 0.45%. Custom Truck One Source, Inc. has the higher net margin (1.05% vs −5.43%) and the higher return on invested capital (4.12% vs 0.15%). Across the 18 metrics below, Avis Budget Group, Inc. leads on 9 and Custom Truck One Source, Inc. on 9.

Valuation

Metric CAR CTOS Rental & Leasing Services median
P/E n/m 105.00 19.17
P/S 0.33 1.06 0.99
P/B n/m 2.63 2.23
Price to free cash flow 1.43 n/m 8.31
EV/EBITDA 5.84 8.64 7.84
EV/Sales 2.49 1.87 2.53
Earnings yield (16.66%) 0.95% 0.95%
Free cash flow yield 69.69% (2.42%) 1.43%

Profitability

Metric CAR CTOS Rental & Leasing Services median
Gross margin 49.40% 22.15% 49.40%
Operating margin 8.49% 7.99% 8.49%
Net margin (5.43%) 1.05% 1.01%
Free cash flow margin 22.75% (2.55%) 1.87%
Return on equity 20.83% 2.67% 12.13%
Return on assets (1.97%) 0.60% 0.24%
Return on invested capital 0.15% 4.12% 2.80%

Growth

Metric CAR CTOS Rental & Leasing Services median
Revenue growth (TTM) 0.45% 7.03% 3.21%
EPS growth (last fiscal year) 50.71% (16.67%) —
Revenue growth, 5-year CAGR 16.62% 45.05% 12.97%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CAR CTOS Rental & Leasing Services median
Debt to equity (7.67) 2.03 1.48
Current ratio 0.81 1.34 1.36
Net debt to EBITDA 5.37 4.17 4.32

Dividend

Metric CAR CTOS Rental & Leasing Services median
Dividend yield 1.59% — 1.59%
Payout ratio 0.00 0.00 0.00

Size

Metric CAR CTOS Rental & Leasing Services median
Market cap 3.66b 2.10b 2.42b

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